Crypto coins in South Korea remained in cold wallets for four years after they were seized by authorities during the judicial process.
South Korean prosecutors sold Bitcoins (BTC) they seized from a criminal in 2017, and from the time he was arrested, Bitcoins are worth $ 10.5 million more. It was reported that the cash was deposited in the coffers of the country’s national treasury.
According to reports from the Suwon District Attorney’s Office, the seized Bitcoin was sold by authorities for the first time, and the cryptocurrencies in question are being moved for the first time since they were placed in the cold wallet in 2017.
Cryptocurrencies, initially valued at $ 238,000 at the time of the seizure, were recently sold for $ 10.8 million, with a 4,400% appreciation in four years. Based on this percentage growth, we can assume that Bitcoin was priced at around $ 1,300, as the arrest was made near April 2017.
Without a specific cryptocurrency law or regulation in effect at the time, the authorities left the cryptocurrencies in the cold wallet. In late March, the South Korean government enacted widespread crypto-specific laws for the first time, putting further pressure on exchanges and virtual asset service providers to use real-name investment accounts and report their activities to Korea’s Financial Intelligence Unit. Prosecutors were reported to be selling cryptocurrencies as soon as the law came into effect on March 25.
South Korea’s determination to regulate the cryptocurrency space stems from revelations about the use of crypto by tax evaders and constant concerns surrounding money laundering. In January 2022, new laws will come into force that impose a 20% capital gains tax on profits from cryptocurrency trading.
The South Korea National Tax Service said the number of cryptocurrency investors increased by 25% last year, resulting in an 800% increase in overall trading volume.